Poor collection of taxes push AMC to face financial instability

By Lokmat English Desk | Published: May 10, 2021 11:00 PM2021-05-10T23:00:01+5:302021-05-10T23:00:01+5:30

Aurangabad, May 10: The Aurangabad Municipal Corporation (AMC) has once again landed into financial trouble as it succeeded in ...

Poor collection of taxes push AMC to face financial instability | Poor collection of taxes push AMC to face financial instability

Poor collection of taxes push AMC to face financial instability

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Aurangabad, May 10:

The Aurangabad Municipal Corporation (AMC) has once again landed into financial trouble as it succeeded in collecting only Rs 15 crore (in the form of taxes) against its statutory expense of Rs 35 crore every month.

In the new financial year, from April 1 to May 7, the civic body collected property tax of Rs 12.71 crore and water tax of Rs 2.54 crore. The poor collection has pushed the administration to think over how to maintain financial stability between its income and expenditure. Meanwhile, the AMC does not have funds to release the salary of its staff and the pension of its retired personnel.

It may be noted out of the total collection of taxes by the citizens, the AMC has to return 50 percent of its collection to the state government in the form of the taxes.

Monthly expense of Rs 35 crore

The AMC needs Rs 19.50 crore to release the salaries of its staff and the pension of retired personnel every month. The other monthly statutory expense includes electricity bill (consumed to operate water supply scheme from Jayakwadi Dam) - Rs 4.50 crore; electricity bill (of streetlight) - Rs 85 lakh; repair and maintenance and fuel cost - Rs 1 crore; LED lights company and others - Rs 3 crore; Solid Waste Management - Rs 3 crore; installment against a loan from LIC - Rs 50 lakh; treatment of sewage water - Rs 1 crore, etc.

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